Saudi contractor Arkad, which is developing the kingdom’s master gas network has entered into a partnership with Swiss firm ABB to expand internationally.
The firm, previously known as Saudi KAD is to hold a majority stake in a new joint venture with ABB’s energy engineering, procurement and construction unit, news agency Bloomberg reported quoting managing director Hani Abdelhadi.
“It has been our goal since the beginning to become an international company,” Abdelhadi told Bloomberg.
“Through an acquisition, it’s easier market access than trying to go and set up in each country.”
The value of the transaction, as well as the stakes held by Arkad and ABB, have not been disclosed. The deal is set to open doors for Arkad to operate in Algeria, Kuwait and the UAE.
Arkad is currently executing Saudi Aramco’s master gas programme’s second phase as well as the Fadhili gas project.
The master gas system, which involves the construction of 1,118km pipeline network across Saudi Arabia will have a capacity of 12.5 billion cubic feet a day when completed in 2018.
The network is set to supply gas to power and petrochemical facilities across the kingdom.